Answer:
Keaton will receive 56,000
Explanation:
cash 100,000 - liab 40,000 = 60,000
non cash assets 58,000
liquidation expense (10,000)
Total 108,000
Loss on sale of noncash assets:
210,000 - 58,000 = 152,000
Liquidation expens 10,000
Total loss to be distribute 162,000
Keaton 20% = 32,400
Lewis: 40% = 64,800
Meador 40% = 64,800
Keaton 90,000 - 32,400 = 57,600
Lewis 60,000 - 64,800 = -4,800
Meador 120,000 - 64,800 = 55,200
If Lewis is insolvent, then it will distribute to Meador and Keaton:
2:0:4
4,800 x 2/6 = 1,600
4,800 x 4/6 = 3,200
kearon 57,600 - 1,600 = 56,000
Meador 55,200 - 3,200 = 52,000
Total 108,000
The total capital account matches the cash balance of 108,000
Our calculation are correct
